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Jones Company issued bonds with a $250,000 face value on January 1, Year 1. The five-year term bonds were issued at 97 and had a
Jones Company issued bonds with a $250,000 face value on January 1, Year 1. The five-year term bonds were issued at 97 and had a 7.00% stated rate of interest that is payable in cash on December 31st of each year. Jones amortizes the bond discount using the straight-line method. Based on this information: The amount of cash outflow from operating activities shown on Jones's December 31, Year 2 statement of cash flows would be: Multiple Choice $17,500. $19,000. $16,000. $20,500.
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